INSURANCE PRICING VALUE CHAIN

The products marked with a * are currently on sale

Defining the tariff*

Who (department)

Product development and management (includes actuarial dpt)


Why (benefits)

Determine forward cost

Create underwriting structure

Develop underwriting standards


How

GLM model


Market based pricing*

Who (department)

Underwriting

Commercial

Reinsurances


Why (benefits)

Adjust price

Access underwriting results

Win-back customers

Market DD

Heat of the market


How

Web Crawlers

Brokers network

Experimental design



Value Based pricing*

Who (department)

Underwriting 


Why (benefits)

Maximize revenue with the client and competition perspectives

Win-back customers

Commercial DD

Marketing plans


How

WtP with experimental design

Market price

Tariff analysis

Underwriting new business (quotation & issuance)

Who (department)

Underwriting


Why (benefits)

Understand the product life cycle as applied to insurance

Client communication management


How

Estimate/quote (thought IT automated system activities)

Virtual brokerage*

Who (department)

Sales rep


Why (benefits)

Determine the best offer to difficult to understand segments (p.ex. SME)

Over promised control

Commercial efficient


How

Brute force with broker&user experience

Artificial intelligence

Portfolio measuring: Assess underwriting results*

Who (department)

Portfolio management/Underwriting 


Why (benefits)

Assess underwriting results

Develop a view of a portfolio as a whole, rather than a case-specific perspective


How

Brute force with broker&user experience

Artificial intelligence

Refocusing an ailing portfolio*

Who (department)

Portfolio management/Underwriting 


Why (benefits)

Boost underwriting results

Develop a view of a portfolio as a whole, rather than a case-specific perspective


How

Identify non-performing segments within a portfolio

Build statistical strategies to refocus an ailing insurance portfolio

Reserves

Who (department)

Actuarial 


Why (benefits)

Determine past cost

Predict results 

Present a true and fair view to stakeholders


How

Establish reserving processes and methodologies

Integrate data and results with claims and underwriting